Republican senators vowed Thursday to block any nominee to lead the fledgling Consumer Financial Protection Bureau unless stronger limits are put on its power, in the latest blow in a long-running battle to rein in the watchdog agency before it officially launches this summer.
In a letter to President Obama, 44 lawmakers called for a board of directors to run the agency, rather than a single leader. The letter also demanded tougher oversight of the CFPB by existing banking regulators, such as the Financial Stability Oversight Council, and that the new agency be funded by congressional appropriations. Under the current structure, the CFPB’s budget is carved from the Federal Reserve.
“How the CFPB director exercises his or her authority . . . will have a profound influence on the future of our economy and job creation,” the letter said. Lead signatories were Senate Minority Leader Mitch McConnell (R-Ky.) and Sen. Richard C. Shelby (Ala.), ranking Republican on the Senate banking committee.
The proposals mirror three bills passed by the House Financial Services Committee a day earlier. Rep. Sean P. Duffy (R-Wis.), who sponsored one of the bills, said he believed that “the movement here on both sides of the aisle is to make sure we have a system that’s going to work for our consumers.”
But consumer advocacy groups lashed out at the proposals, arguing that they would give banks undue influence over the CFPB and jeopardize its independence.
“Enactment of these measures would virtually guarantee that the CFPB would be a weak and timid agency,” said Travis Plunkett, legislative director for the Consumer Federation of America.
Friday, May 06, 2011
I Can't Believe We're Losing To These People
Republicans still hate consumers: